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How Outsourcing
Affects
IT Jobs
The
trend of moving information technology (IT) jobs to low-wage foreign
countries is expected to grow dramatically in the next few years.
This trend is called offshoring. It means that
instead of competing with other job seekers in your own country, you
will compete with skilled workers from all over the world. And many of
them are able to work for a much lower salary than you.
"In today's global economy, jobs are located in the area of the world
where they can be performed the most effectively and at the lowest
cost," says Barry Gander. He is the executive director of a technology
alliance.
"This is true in many fields; for example, manufacturing. But it is
also true in IT."
Say you wanted to get your Nintendo Wii repaired. There is a company
down the street who can fix it for $50. There is another company across
town willing to do the same job for $10. Who would you rather hire? If
you were interested in saving money, you would give the job to the
company across town.
IT companies are making the same decisions. They're looking all around
the world for the best ways to save money on labor.
Many of these organizations are building centers of their own in lower
cost locations, such as India or China. Employees there take over
certain jobs and do them for a lot less money than a North American
worker.
Another trend affecting IT jobs is outsourcing. Outsourcing is not the
same as offshoring, but they are often confused.
Outsourcing is what you do. It's when you give work to a supplier
outside your own organization and then buy the product or process from
that supplier.
Offshore is how and where services are delivered. When organizations
offshore, they set up offices in different places to save money.
Not all IT jobs can be done from a distance.
"The IT jobs that should be performed in [North
America] are those that need to be close to the business to be
effective; for example, defining the architecture or business
requirements for a new piece of software," says Gander.
"This is because to be effective, the people in these jobs need to have
frequent, detailed interactions with the business people located in
North America.
"Jobs that can be performed overseas are those that are more generic or
independent; for example, converting a piece of software from one
computer language to another," he explains.
"Here, the need for interaction is less, and the economies of doing the
work offshore make this a good option."
Although some Canadian jobs are being sent to overseas, low-wage
locations, Canada itself is a lower wage location for some American
jobs.
"While Canadian costs are not as low as places like India, there are
many advantages for U.S. companies who send their IT work to Canada.
The cultures are similar, we are in the same time zones, we are
politically stable and we are easier to get to. Canada also has a
wealth of highly skilled and knowledgeable IT professionals."
The fast-paced nature of a career in IT makes it a career for those who
are adaptable.
"Change will be a career-long theme for anyone in IT," says Gander.
"IT professionals must constantly be aware of the direction the
industry is taking and the new technologies that will be the mainstay
of the next generation. They must continue to invest in themselves
through training programs and by seeking out the new and challenging
opportunities."
Skills are not something that you can learn once and forget about. You
need to keep learning to be an in-demand worker.
"Skilled workers are absolutely essential," says Keith W. Fiveson. He
is the managing consultant of IT Enabled Services Alliance (ITESA) in
New York.
"There are predictions that by 2015, over 50 percent of the population
of the U.S. will be over 55 years of age. Furthermore, a shortfall in
the job market -- with 10 million jobs available with not the right
skilled personnel to fill them -- creates a need for a better-educated
workforce.
"Individuals should have several skills to compete, in areas like
biotechnology, logistics, medical sciences and so on," says Fiveson.
Teams based all around the world are delivering IT services.
"To work well in this environment, people will need to be able to work
with different cultures, appreciate different decision-making styles,
and learn to leverage diversity," says Darren Meister. He is the author
of a report on outsourcing.
If you're interested in pursuing an IT job, plan for the realities of
offshore competition. Make yourself valuable to your company on home
soil.
"IT professionals are increasingly developing a 'double major'
approach. That is, [they are] building expertise in both a technology
area and a business area," says Gander.
"IT professionals must no longer be pure technologists. And they can no
longer be business generalists. They must cultivate their knowledge of
a specific business area with the same intensity they apply to their
technical skills."
Meister recommends reading the general business press. Looking for
factors that will affect job prospects.
"Stay in tune with which industries are growing
and which are shrinking. Watch for companies that are being celebrated
for their use of IT, then think how others like them could apply
similar technologies," says Robert W. Scott. He co-authored the report
with Meister.
In the end, it is in your hands to find a way to succeed.
"Seek out opportunities to learn about the businesses you serve and new
technologies, and remember that you are competing in a global
marketplace," says Scott.
"If you are not the best you can be, it's likely that someone,
somewhere in the world will be better."
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Net
Sites
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NASSCOM
Newsline
IT news from the National Association of Software and Service Companies
http://www.nasscom.org/newsline/
E-Commerce Times
Keep up with all the latest in IT news
http://www.ecommercetimes.com/
Offshore Outsourcing
Basics
Definitions and more from E-Business Strategies
http://www.ebstrategy.com/Outsourcing/basics/definition.htm
Business Week
A good place to keep up with the general business press
http://www.businessweek.com/
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